Home >

2019 China'S Second Hand Luxury Report: China'S Second Hand Luxury Market Is On The Rise.

2020/2/27 10:15:00 0

Luxury Goods

The second hand luxury market in China shows a small, early, fast and chaotic development. The development of China's second hand luxury market is accelerating. The market size of the 20 billion yuan, the average annual growth rate of 30%, the market size and the world share are still small. However, compared with the political, economic, social and technological factors in China and Japan, China has great potential in the secondary luxury market in the future, and it already has the basic elements of explosive growth.

What are the key factors driving the growth of the industry? From the demand side, the pursuit of classic brand, classic style and genuine goods in the consumption concept surpasses the high imitation and goods that are easy to get in the Chinese market, and improves the acceptance and tolerance of the second hand. From the supplier side, there are many offline stores, deep ploughing industry chain (authentication maintenance) and vertical end platform enterprises (first hand consumption and customer big data), which have advantages in organizing the supply of goods. Industry development is restricted by the supply of industry professionals (mainly in the industry of credit enhancement and value-added services in maintenance and renovation). From the transaction mode of matching demand and supply side, C2B2C, which has bought and offered value-added services, has efficiency and development advantages.

This report tracks the latest developments in the second hand luxury market in China. By deconstructing the characteristics of the secondary market, market profile, the contrast between China and Japan, and the advantages of the main business enterprises in China, Japan and the United States, it explains the consumption of the second hand luxury market, and makes a summary and outlook for China's second hand luxury market.

   Overview of China's second hand luxury market

Second hand luxury goods industry has great potential, but the industry is absolutely small. According to the customer research institute, the luxury goods available for secondary market will reach 1 trillion yuan. However, in 2019, the transaction volume of second-hand luxury goods was only 20 billion yuan. The redistribution ratio is only 2% based on transaction volume and industry stock, and the industry is far from being deeply activated. The proportion of China's second hand luxury goods market is only 10%, which accounts for 40% of the world's market share, and the market position is very incommensurate. It also indicates the great potential of China's second hand luxury market.

Although the scale of the industry is small, but the industry has accelerated in recent years, the average annual growth rate of the industry turnover has reached 30%, some enterprises have increased to 100%, and the number of business enterprises has also shown explosive growth, from the first tier cities to the two or three tier cities, and the development of multi polarization.

The characteristics of the second hand luxury market also restrict the development of the industry, such as the information asymmetry of buyers and sellers in the secondary market, the difficulty of standardization and quantification of the trading target, the difficulty of organizing the source of goods (a typical seller's market), the overflow of counterfeit goods, the low efficiency of the point to point matching transaction, and the need for funds to help form a large C2B2C trading platform, industry operation standard and integrity system. The design is not yet perfect.

Luxury consumption accounts for China

   Two, the development of second hand luxury market in China and Japan

The developed countries such as Europe and America, Japan and other developed economies have a mature and rational national consumption concept and have a high degree of acceptance of second-hand luxury goods. In particular, China and Japan are separated by a narrow strip of water, and are similar in economic, social and cultural aspects. After thirty years of development, Japan's second hand luxury goods breeds ten listed companies, with a market scale of 100 billion, and has formed a relatively mature industrial system as well as the upstream and downstream industry circulation ecology.

Throughout the industrial development, Japan has built a good industry guidance standard system in terms of industrial policy, business qualification approval, industry operation standards, quantitative classification system of goods, and heavy penalties for sale and punishment. On the economic factors, the export oriented economy has accumulated a lot of national wealth for Japan. In the 80s and 90s of last century, Japanese citizens consumed a lot of luxuries in the world. Goods, the collapse of the economic bubble accelerated the bankruptcy of the middle class, and a large number of luxury goods sold in the market in order to relieve economic pressure. On social factors, the Japanese people's preference for luxury brands, the concept of love and the best use of their products were conducive to the re circulation of luxury goods; on the technical factors, the Japanese craftsmen spirit made them in the chain of second-hand industries such as maintenance, maintenance and renovation. It can provide high value added services, and Japan has a special luxury Appraisal Association to continuously deliver talents to the industry.

In contrast to the development factors of politics, economy, society and technology in China and Japan, China has similar industrial development elements in Japan after its economic and social aspects of Japan's strengthening and breakthroughs in value-added and technological aspects.

   Three, consumption characteristics of second hand luxury goods market

   (a) people: what kind of people are the core consumer groups of the second hand luxury market?

The second hand luxury market is a highly fragmented market. The main body (backbone) in the market is located in the middle of wealth income in Pyramid. There is a clear and realistic luxury consumption demand. At the same time, it also pursues a certain performance price ratio, pursuing the cash flow of stock luxuries and upgrading the existing brand models. Over the age of 35, there are more mature customers with stable social income and a certain social status. After 20-30 years old, 90 and 95, the consumer group has a strong demand for luxury goods, with limited purchasing power and rejection of high imitation goods, making it an active participant in the second hand luxury market.

75% of the second hand luxury goods sellers are 30-50 years old group, 20% are wealth groups (with more than ten million net assets) and 5% are other groups. Second hand luxury buyer groups were distributed according to age: 40% after 80, 40% after 90, and after 20%95. The income of the group after 80 is relatively stable, but the family economic burden is heavy, the workplace needs to buy more luxury goods. After 90, the consumer groups pursue the aesthetic, fashion and taste, and have limited earning ability, and then become the second-hand consumption group. These two groups are the most active buyers of second hand luxury goods.

Distribution of second-hand luxury sellers crowd

Distribution of buyers of second hand luxury goods

Second hand luxury buyer user portrait

   (two) goods: what kind of goods sell well in the secondary market?

The second hand market is the best seller market, and the luxury market is the vane of the secondary market. However, because the primary market to the secondary market needs time to precipitate, it is often more classic supply and even more transactions. At the same time, both classic and cost-effective products are popular in the secondary market. From the two dimensions of volume and turnover, two categories of watches and bags were won, and the bags were leading in volume (50%), and the wrist watch was ahead of the total turnover (48%). The classic products of Hermes and Chanel are sold out immediately, and most of the goods are completed within one month. The weak luxury brands in the brand value preservation and appreciation are not popular in the secondary market. The gender distribution of demand for watches and bags is opposite: wrist watches category 90% buyers in men, bags / jewelry category 90% buyers for women.

   (three) field: where to consume second hand luxury goods?

Second hand luxury goods online naturally have the advantage of aggregated and dispersed market and the source of dispatching goods. Online growth is better than offline. The online penetration rate of China's second hand luxury goods market has reached 50%, far higher than the 17% penetration rate in the primary market. The 30000 yuan unit price is the watershed. Under 30000 yuan can be synchronized online and offline, and more than 30000 yuan can only be sold through offline channels with stronger sense of experience.

The front-line market is absolutely high, the two or three line market has made rapid progress, the first tier cities have started early, and the demand for the two or three line cities has been growing rapidly along with the expansion of the online market, and the characteristics of the high-speed line market and the low line market demand show obvious differences: the high speed line market prefer the high-end high-end brand, the new model and the new model, the low line market preference has a large number of cards, classic models, middle ancient models, and large logo models. 。

The proportion and distribution of second hand luxury goods line

   Four. Analysis of the main business entities of second hand luxury goods

The main business entities are pawn shops, consignment shops, professional second-hand luxury business operators (online based), luxury appraisal and maintenance businesses (based on industry chain extension). At present, Chinese pawnshops are leading in the second hand luxury industry because of their advantages in stores. The latter two main bodies (online professional second-hand luxury businesses, appraisal and maintenance businesses) are organizing the supply and aggregation of goods. Customers have advantages.

There are two main business models: C2C and C2B2C. The former mainly focuses on matching transactions and collecting commissions. The latter is mainly bought by buyout and value-added services. The latter is more efficient and the business mode is based on openness and ecology.

The ability to drive industry growth and build enterprise competitive advantage is: 1. supply chain integration capability: 2. performing operation capability; 3. fidelity and Jian Zhen capability. Online businesses can be divided into vertical electricity providers (one market oriented), content producers (GGV), and professional second-hand electric providers. Online businesses with capital advantages, settling customers and excellent team operation will explode tremendous vitality.

   Five. Problems and future trends of second hand luxury goods industry

The common problems in the industry are: 1. the difficulties of large-scale organization of goods supply; 2. the proliferation of counterfeit goods (the first big problem in the industry); 3., the lack of key talents in the industry, and the long training cycle; 4., lack of the accreditation bodies with credibility at the national level and industry level; 5., lack of specific industry standards.

   Guest view:

   The industry will develop further and further in the future.

   1., service creates value and ideas are guided.

   2. technology to enhance efficiency, big data technology empowerment industry quantification and standardization;

   3., resources should be concentrated on the top enterprises, and the survival of the fittest will be accelerated.

   4., online advanced development, line layout, double line diversion and common development;

   5. the industry knowledge system is not closed and static. Raw materials, technology, new product development, etc., need to update the industry knowledge and keep pace with the times.


Source: guest University

  • Related reading

"Epidemic Prevention" Promotes Internet Healthcare: Will 2020 Become The First Year Of Eruption?

Venture capital project
|
2020/2/27 9:13:00
0

The Mainland'S "Professional Warehouse Supervision + The Test Of Warehousing And Notarization" Warehousing Starts After The Inspection.

Venture capital project
|
2020/2/26 16:40:00
2

Facing Tesla: How Can China'S Car Companies "Take Advantage Of The Situation"?

Venture capital project
|
2020/1/14 19:13:00
3

Can Ctrip Be One Of The Three Giants In The World?

Venture capital project
|
2019/11/16 9:34:00
4

Smart Intelligence -- The Indispensable Partner Of The New Retail Mode

Venture capital project
|
2019/11/1 15:01:00
122
Read the next article

Lululemon Is Also Facing Expansion Pressure.

Lululemon's profitability is unquestionable, especially its operating profit margin (the past 12 months) is 21.45%.